Archive for January, 2008
Monday, January 21st, 2008
Proposals for dealing with the foreclosure crisis frequently include allowing bankruptcy judges in Chapter 13 cases to modify residential mortgages to bring them in line with the actual value of the debtors’ homes, and, where appropriate, reduce the interest rate. This would often result in substantially reduced mortgage payments. At present, only non-residential mortgages can be modified in Chapter 13 bankruptcy.
While this approach to mortgage-debt relief seems helpful on the surface, it has one important flaw. A large number of people facing foreclosure are unable to propose feasible Chapter 13 plans that would be a prerequisite for the proposed relief. Proposals for mortgage debt relief in bankruptcy should include Chapter 7 bankruptcy as well as Chapter 13 bankruptcy.
It of course makes sense to use Chapter 13 as the vehicle for residential mortgage modifications — Chapter 13 already allows for modification of other types of secured debts, and provides for amortization of mortgage arrears over the life of the plan. However, to extend the relief to the many debtors who can’t use Chapter 13, Chapter 7 bankruptcy judges should also be authorized to modify mortgages and interest rates, and fold any arrearages into the newly modified mortgages. This will permit debtors to emerge from Chapter 7 with their home ownership intact, and reap the benefits of lower mortgage payments as part of their fresh start.
Not every person or family would be eligible for this relief. The bankruptcy judge would determine whether the debtor could afford the modified mortgage after bankruptcy. This determination would be based on the debtor’s income, income history, and other expenses. If the judge decides that the mortgage would cause the debtor undue hardship or interfere with the debtor’s fresh start, the mortgage would remain as is, and the creditor would be given a green light to proceed with the foreclosure. Importantly, this is the same procedure as is already used in in Chapter 7 “discharge hearings” when self-represented debtors seek to reaffirm car notes and other secured debts.
Perhaps using Chapter 7 as well as Chapter 13 bankruptcy for mortgage modifications doesn’t go far enough. Maybe a special federal court procedure should be set up where anyone facing foreclosure can apply for relief without having to file any type of bankruptcy. There may be constitutional impediments to modifying mortgages outside of bankruptcy, but, if not, it would be wonderful to have a universal procedure for residential mortgage relief, at least from the standpoint of the millions of borrowers subject to predatory loans and flat-out unaffordable mortgages.
Posted in Finance | Comments Off
Monday, January 21st, 2008
A Bankruptcy is a legal means of dealing with debts that for one reason or another have now become impossible to pay. If your income is still enough to maintain the car and house, and it just credit cards or other unsecured debts that is the problem then the Chapter 7 Bankruptcy can discharge those debts and allow your to start over keeping your present car and home.
If you have fallen behind on the car and house also then the Chapter 13 Bankruptcy will help you keep those things as long as the income is at least enough to continue making the payments once the bankruptcy has caught you up. The bankruptcy has rules that both you and the creditor have to go by, This is why you need to talk to a Bankruptcy Attorney when a major change has happened to your income.
Charlotte Bankruptcy Lawyers
Fort Worth Bankruptcy Attorney
Dallas Bankruptcy Attorney
Posted in Finance | Comments Off
Friday, January 18th, 2008
In todays time having bad credit is going to force you to pay way too much for a car and chances of owning a home is going to be impossible. Bankruptcy is better than bad credit. Things happen in our lives that we do not always have control of, Losing a job after many years, a divorce, or some from of medical illness. When these things happen, the way we paid our bills before is now not possible. The term a fresh start was put to a bankruptcy for a reason. Bankruptcy is a legal means of taking care of our responsibility of debts. It is unfortunate that the bankruptcy needs to be filed but at least you did something about the debts. Just not paying means the debts will never go away a new collection agency will come and pick up the debts and now its another 7 years. Once the Bankruptcy is filed ten years later the bankruptcy and all the bad debts fall off but in the mean time you will be able to start rebuilding your credit basically the day it is filed. Credit cards will usually start sending you offers after 6 months, car dealer will look at you differently , and mortgage company’s will consider lending you money in a couple years.
So if there has been a change in your income you should talk to a Bankruptcy Attorney to see how the bankruptcy laws can help you.
Maryland Bankruptcy
Omaha Bankruptcy Lawyer
Charlotte Bankruptcy Lawyer
Posted in Finance | Comments Off
Thursday, January 17th, 2008
When you file a bankruptcy yes you could lose some assets. Depending on which state that you live you can use either state exemptions or federal exemptions. The exemptions are the allow-able things you can have and file a Chapter 7 Bankruptcy and those things are protected. You can always go into a Chapter 13 Bankruptcy and protect those thing that are not protected, meaning paying an equal amount to the creditors of what the assets are valued at. In Texas you are allowed to use either state or federal exemptions. An example would be your home is paid for, the state exemption would cover the home, two cars for husband and wife and the house whole contents. The boat and the five thousand in stocks you have would be unprotected. If there was no home the cars, boat, and stocks might be protected by using federal exemptions.
If a Bankruptcy is a term being used in your life talk to a Bankruptcy Attorney to see how the bankruptcy laws can help you.
Ohio Bankruptcy Lawyer
Cleveland Bankruptcy Attorney
Nevada Bankruptcy Lawyers
Posted in Finance | Comments Off
Wednesday, January 16th, 2008
The filing of a Bankruptcy is a legal way of dealing with creditors, that for one reason or another that you can not continue to pay. By filing the bankruptcy yes you may lose some things but if you don’t file you might lose more things. If you have lost your job and you can not afford to make your car payment the creditor has the right to come reposed the car, but if you have just taken a cut in pay the Chapter 13 Bankruptcy can lower your car payment to where you can keep the car. The car creditor has to accept this lower payment because it is the law. This is the same for your home and the credit cards, they have to abide by the bankruptcy laws.
So if something has happened to your income talk to a Bankruptcy Attorney to see how these laws can help you.
California Bankruptcy Lawyer
Phoenix Bankruptcy Lawyer
Colorado Bankruptcy
Posted in Finance | Comments Off
Monday, January 14th, 2008
How much should a personal bankruptcy cost in Michigan? I know that bankruptcy is not a good idea and believe me I have exhausted all other options. I am going to file a Chapter 13 bankruptcy which includes me and my wife. One attorney that does television advertising in my area told me over the phone that my only out of pocket cost would be $594.00. I have heard from a few other people that this type of thing should cost around $2000. Unfortunately, no other attorney will give me any type of price without an in person consultation. I just want to know what the ball park price for this is going to be and also if anyone has any experience with a reputable bankruptcy attorney in the Metro Detroit area.
Posted in Finance | Comments Off
Monday, January 14th, 2008
How much should a personal bankruptcy cost in Michigan? I know that bankruptcy is not a good idea and believe me I have exhausted all other options. I am going to file a Chapter 13 bankruptcy which includes me and my wife. One attorney that does television advertising in my area told me over the phone that my only out of pocket cost would be $594.00. I have heard from a few other people that this type of thing should cost around $2000. Unfortunately, no other attorney will give me any type of price without an in person consultation. I just want to know what the ball park price for this is going to be and also if anyone has any experience with a reputable bankruptcy attorney in the Metro Detroit area.
Posted in Finance | Comments Off
Monday, January 14th, 2008
As readers of this blog know, bankruptcy can be used to effectively deal with foreclosure. In keeping with my last post on the subject, I’ve just published an article in the Nolopedia, Nolo’s encyclopedia of free legal information:
“If you are facing foreclosure and cannot work out a deal or other alternative with the lender, bankruptcy may help.
“If you get behind on your mortgage payments, a lender may take steps to foreclose — that is, enforce the terms of the loan by selling the house at a public auction and taking payment of your loan out of the auction.
“This won’t happen overnight. The foreclosure process typically starts after you fall behind on your payments for at least two months and often three or four. That gives you time to try some alternate measures, such as loan forbearance, a short sale, or a deed in lieu of foreclosure…”
To keep reading, click here.
Posted in Finance | Comments Off
Monday, January 14th, 2008
As readers of this blog know, bankruptcy can be used to effectively deal with foreclosure. In keeping with my last post on the subject, I’ve just published an article in the Nolopedia, Nolo’s encyclopedia of free legal information:
“If you are facing foreclosure and cannot work out a deal or other alternative with the lender, bankruptcy may help.
“If you get behind on your mortgage payments, a lender may take steps to foreclose — that is, enforce the terms of the loan by selling the house at a public auction and taking payment of your loan out of the auction.
“This won’t happen overnight. The foreclosure process typically starts after you fall behind on your payments for at least two months and often three or four. That gives you time to try some alternate measures, such as loan forbearance, a short sale, or a deed in lieu of foreclosure…”
To keep reading, click here.
Posted in Finance | Comments Off
Sunday, January 13th, 2008
If your business is strapped for cash or if you’re starting a new business… read this.
Click here to play
Posted in Finance | Comments Off
